Computer method and apparatus for outcome-based pricing of goods and services

ABSTRACT

The present invention provides a system and method that allow sellers to offer goods and services at prices that vary depending on what transpires during the event or service. The final price is determined after the event or service based on the occurrence of certain pre-selected attributes. Candidate attributes are potentially associated with the event or service but the outcome or occurrence of the attribute is not knowable by the buyer and seller with certainty at the time of the original purchase. Using the outcome-based pricing (OBP) and settlement system the seller can set prices to minimize significant deviation from a pre-determined revenue plan, or alternatively build-in an increase or even decrease in gross revenues. The present invention allows for the order, payment and final settlement of the purchase transaction, automatically. The preferred embodiment for the OBP pricing and settlement system is via a computer network that includes the Internet.

RELATED APPLICATION(S)

This application claims the benefit of U.S. Provisional Application No.61/072,325, filed on Mar. 28, 2008, the entire teachings of which areincorporated herein by reference.

BACKGROUND OF THE INVENTION

It is common business practice for event promoters and ticketdistributors, as well as airlines and other service for providers, tooffer tickets for sale in person at ticket offices, over the phone orvia the Internet. When buying tickets online, a purchaser reviews theavailable inventory and prices of tickets offered for sale, and afterdeciding what tickets to purchase, places an order via the Internetusing well established, online purchasing procedures.

Ticket prices for events are typically established by the promoter ordistributor and available seats for specific events are offered for saleat specified prices. Basic supply and demand forces determine whatticket prices the market will bear, with purchasers willing to pay morefor tickets that are generally considered to be more desirable based ona variety of attributes. For example, for entertainment events such assporting events, typically ticket prices of seats for a given event varybased on the physical proximity of the seats to the location of theperformers within the venue such that seats close to the field or thestage and offering the best viewing vantage point cost more than seatsfurther away from the field or stage and offering a less desirableviewing vantage point. Certain other variables might also determine thepricing of the seats, such as whether the seats come with in-seatservice, parking and other perquisites and amenities. For certain typesof events, the price of tickets also often vary depending on the dateand time of the showing, with tickets for high demand times pricedhigher than tickets for low demand times. The provision of certainservices, such as airline flights, are also priced based on acombination of attributes associated with the selected seat.

Inherent in the standard ticket pricing model is the fact that ticketprices for a given seat at a specific event, and the price for certainservices, once set by the seller, are static, and will not varyregardless of their utility, or actual value that a particular purchaserderives from the event. The static setup of ticket pricing does notallow for a person who gets more use and enjoyment out of attendance atan event based on what happens during the event to pay more than thestandard price. Neither does it allow a person who gets less use orenjoyment out of attendance at an event based on what happens during theevent to pay less than the standard price. Similarly, as it relates tothe provision of certain services such as airline transportation, thebuyer pays an agreed upon price regardless of the quality of theservice. Alternatively stated, the current pricing method does not allowa seller of tickets, or the provider of services, to charge more for anevent or service that delivers a high level of value to a purchaser, nordoes it allow a seller to charge less for an event or service that isdisappointing to the buyer.

SUMMARY OF THE INVENTION

Most people who have attended sporting events have experienced both thethrill of victory and the frustration of defeat, the excitement of asuspenseful game and the boredom of a lopsided victory, and the range ofother emotions that are inherent in the fan experience. Yet, while thevalue of a game to a fan can vary considerably from one game to thenext, the ticket price of a particular seat in a given stadium isgenerally the same from game to game irrespective of the fan experience.As a result, a fan can come away from a game one day feeling like thepurchase of a seat was money well spent, and another day pay theidentical price for the identical seat but come away feeling like heoverpaid. Similarly, from the seller's perspective, the seller chargesthe same price for an event regardless of the value realized by thepurchaser. In short, the pricing of tickets from both the purchaser'sand the seller's perspective is highly inefficient. The price is thesame regardless of the elasticity of demand for the product asdelivered. The same can be said of purchases for a variety ofentertainment events, as well as the provision of certain types ofservices.

Events such as baseball games, and the provision of certain servicessuch as airline flights, are each characterized by a wide range ofattributes. Certain attributes in particular, either individually orbundled together, are of high value from the buyer's perspective.However, the value of any specific attribute may well vary from buyer tobuyer. As such, if the seller were able to guaranty to the buyer certainattributes at the time of the sale, the seller would in theory be ableto charge a higher price per unit without sacrificing the volume becausethe elasticity of demand for a high value product is lower. Of course,in many cases the occurrence of certain attributes can not be predictedor guaranteed at the time of sale. Rather, only after the event is over,or a service is performed, will the parties have knowledge of whichattributes describe the event or service as performed. For example, whena ticket to a baseball game is purchased, neither the buyer nor sellerknow with certainty which team will win. Similarly, when a ticket issold for an airline seat, neither the buyer nor the seller know whetherthe flight for which the seat was purchased will leave on time. Theseattributes, a win or an on-time flight, are not perceivable until afterthe event occurs or service is performed.

The present invention allows sellers of goods, including tickets to avariety of event performances, and services, to set prices based on theattributes that have undefined or unknown outcome (occurrence) when thepurchase is made. Through this pricing methodology, the ultimate pricepaid by the buyer more closely reflects the value realized by the buyer,and the payment received by the seller more closely reflects the valuedelivered by the seller. While it has application in offline sales aswell, the current invention is best suited to the purchases made overthe Internet.

The following description illustrates non-limiting example embodimentsand features that may be incorporated into a system for pricing andselling goods, including tickets to certain events, and services suchthat the final price charged to the buyer is determined, and finallysettled, after the occurrence of the event or the provision of theservice, where the term “system” may be interpreted as a system, asubsystem, apparatus, device, method, computer based or other based, orany combination thereof.

A method or corresponding apparatus in an example embodiment of thepresent invention relates to pricing and selling goods, includingtickets to certain events, and services such that the final pricecharged to the buyer is determined, and finally settled, after theoccurrence of the event or the provision of the service. The price isbased on whether a pre-selected attribute potentially characteristic ofsuch event or service occurs during the event or service. The inventionsystem may provide at least one client computer connected to a computernetwork under control of a client system and display via a graphicaluser interface a variety of goods, including tickets to events, orservices, from which the user of the client computer or buyer mayselect. In response to the buyer selection, the invention system mayrequest from a server system the availability of a specifically selectedgood, including a ticket to an event for a specific seat, or service,and display information on the buyer's computer identifying availabilityof the selected unit of good or service. In response to the buyerselecting a specific good or service, the invention system may requestfrom a server system database a standard price for such unit and displaythe standard price and an option for the buyer to select from a secondpricing option, namely an outcome based pricing on the buyer's computer.

The outcome based price depends on the occurrence of a specific,pre-selected attribute potentially characteristic of the unit. Theinvention system may request from the buyer to select either thestandard price option or the outcome-based pricing option. Otherpermutations of these options may be presented. In response to the buyerselecting outcome-based pricing, the invention system may request fromthe server system a list of attributes to select from, attributespotentially characteristic of such event or service from which the buyermay select. The invention system may display one or more of theseselectable attributes and request that the buyer selects one selectableattribute. The invention system may receive a response from the buyerand in response to the buyer selecting a specific selectable attribute,request from a server system two prices for the unit, including a lowprice and a high price and present the two prices to the buyer. The lowprice is arranged to correspond to a negative occurrence, the price ifsuch selected attribute does not occur. The high price is arranged tocorrespond to a positive occurrence, the price if the selected attributedoes occur. The invention system may receive from the server system thehigh price and low price, display on the buyer's computer the high priceand low price, and request that the buyer agree to pay upon placing theorder for the unit either (i) the high price, (ii) the low price, (iii)no payment initially with full settlement to be made after the event isover or service rendered and the final price known, or (iv) the standardprice.

The invention system may receive the order and in response to the ordernotify the buyer of the terms for settlement of the purchase, andrequesting that the buyer confirm his or her acceptance of the terms ofsettlement. The invention system may receive the confirmation, generatean order to purchase the requested unit from the buyer on the agreedupon settlement terms, fulfill the generated order to complete thepurchase and charge the buyer's credit or debit card or accept otherform of payment, and deliver an online receipt to the buyer. In theevent the buyer selects outcome-based pricing, after the completion ofthe event or service, the invention system may request from the serversystem a notification as to the whether the selected attribute in factoccurred and receive the notification. The invention system may requestfrom the server system the final price based on the occurrence of suchattribute, receive the response with the final price, request the finalsettlement amount from the server system and initiate a credit or debitto the user's credit card account or some other form of settlement.

The invention system may fix both the premium over the standard pricereflected in the high price and the discount under the standard pricerepresented by a low price by the seller. The invention system may fixmultiple values for the premium and discount representing differentspreads between the high price and the low price resulting in multiplepricing options to the buyer by the seller. The high price and low pricemay be determined by, in the former case adding the premium to thestandard price, and in the latter case, subtracting the discount fromthe standard price.

The invention system may determine the premium and the discount based ona formula or formulae established by the seller defining themathematical relationship between the standard price, the premium andthe discount. The formula or formulae may incorporate statisticalprobabilities for both the positive occurrence and negative occurrenceby calling such statistics from a server system database so that theseller can establish the high price and low price such that the expecteddeviation from the standard price over a statistically significantsample set can be controlled by the seller.

The seller may fix the value for the discount, resulting in the premiumbeing solved for automatically using the formula or formulae, anddetermine the high price and the low price. The invention system maydetermine the high price by adding the premium to the standard price.The invention system may determine the low price by subtracting thediscount from the standard price. The seller may fix the value for thepremium, resulting in the discount being solved for automatically usingthe formula or formulae and the high price and low price beingdetermined by, in the former case adding the premium to the standardprice, and in the latter case, subtracting the discount from thestandard price. The seller may fix multiple values for the discountresulting in multiple spreads corresponding to the difference betweenthe high price and low price resulting in multiple pricing options tothe buyer. The seller may fix multiple values for the premium resultingin multiple spreads corresponding to the difference between the highprice and the low price resulting in multiple pricing options to thebuyer.

The buyer may fix the value for the discount as a result of which thepremium is automatically solved for using a formula or formulae and thehigh price and low price are determined by, in the former case addingthe premium to the standard price, and in the latter case, subtractingthe discount from the standard price. The buyer may fix the value forthe premium as a result of which the discount is solved forautomatically using the formula or formulae and the high price and lowprice are determined, by, in the former case adding the premium to thestandard price, and in the latter case, subtracting the discount fromthe standard price. The buyer may fix multiple values for the discountresulting in multiple spreads corresponding to the difference betweenthe high price and low price resulting in multiple pricing options tothe buyer. The buyer may fix multiple values for the premium resultingin multiple spreads corresponding to the difference between the highprice and the low price resulting in multiple pricing options to thebuyer. The buyer may identify a selectable attribute other than from thelist provided by the seller. The buyer may simultaneously selectmultiple selectable attributes.

The selected attribute may be of such a nature that it can be controlledby the seller or performer of the goods or services, and the seller maybe provided with data prior to the event or service about the aggregateof the premiums that the seller may realize based on the positiveoccurrence of the controllable selected attributes whose information isused to inform the seller's performance decisions.

The client system and the server system may communicate via theInternet.

Additionally, an example embodiment of the present invention relates topricing and selling goods, including tickets to certain events, andservices, in which the final price charged to the buyer may bedetermined, and finally settled, after the occurrence of the event orthe provision of the service. The price is based on whether one or morepre-selected attributes potentially characteristic of such event orservice occurs during the event or service. The invention system, undercontrol of a server system, may provide at least one server connected toa computer network, receive a request from a client computer for a listof goods, including tickets to events, or services, respond to suchrequest by providing such list, receive a request from a client computerfor the availability of a unit, and respond to such request by providingthe availability of such unit. The invention system may receive arequest from the client computer for the standard price of such unit,respond to such request by providing the standard price, receive arequest from the client computer for a list of one or more selectableattributes, respond to such request by providing a list of selectableattributes, receive a request from the client computer for the highprice and low price associated with a selected attribute, and execute asubroutine in order to calculate the high price and low price.

The invention system may call from a database the formula or formulae tobe used in the calculation, call from a database the statisticalprobability for the selected attribute, call from a database thestandard price, and/or call from a database any other constants ormathematical relationships comprising the rule established by theseller. Other computer processing configurations are suitable. Theinvention system may perform the calculation of the premium and discountby solving the formula or formulae, calculate the high price and lowprice by, in the former case adding the premium to the standard price,and in the latter case, subtracting the discount from the standardprice, store on the server in the data record with respect to the highprice and low price as calculated, respond to such request by providingthe buyer with a high price and low price, and receive a request fromthe client computer to purchase the unit by agreeing to pay at the timeof the purchase either (i) the high price, (ii) the low price, (iii) nopayment initially with full settlement to be made after the event isover or service rendered and the final price known, or (iv) the standardprice.

The invention system may respond to such request by notifying the buyerof the terms for settlement of the purchase, and request that the buyerconfirm his or her acceptance of the terms of settlement, receive theconfirmation from the client computer, receive a request from the clientcomputer for a purchase order, respond to such request by providing apurchase order, receive from the client system a purchase order, executea subroutine in order to settle the initial order and store theinformation necessary for final settlement of the transaction. Theinvention system may respond to the purchase order by initiating acharge to the buyer's credit or debit card through a credit cardprocessor or accept other form of payment, and initiate the fulfillmentof the order and delivery of the ticket or confirmation of the order.

The invention system may receive from the client computer a request fora receipt confirming the purchase of the ticket, respond to the requestfor a receipt by sending an online receipt to the client computer,request from the client computer data with respect to the purchase,including the name of the buyer, the buyer's credit card information,the price paid by the buyer and the unit purchased, and store on aserver in a data record specific identifying information and detail withrespect to such purchase.

In the event the buyer selects option-based pricing, after thecompletion of the event or service, the invention system may execute asubroutine to monitor a data record for the status of the event orservice for which the purchase was made, call from a data record theoutcome of the selected attribute upon completion of the event orservice, call from a data record the final settlement amount andsettlement instructions, initiate a credit or debit to the user's creditcard or some other form of final settlement, and store on a server datathe final settlement terms and status.

The invention system may fix both the premium and the discount. Theinvention system may fix multiple values for the premium and discountrepresenting different spreads resulting in multiple pricing options tothe buyer. The invention system may determine the high price and lowprice by, in the former case adding the premium to the standard price,and in the latter case, subtracting the discount from the standardprice.

The invention system may determine the premium and the discount based ona formula or formulae established by the seller, formula or formulaedefining the mathematical relationship between the standard price, thepremium and the discount. The formula may incorporate statisticalprobabilities for both the positive occurrence and negative occurrenceby calling such statistics from a database so that the seller canestablish the high price and low price such that the expected deviationfrom the standard price over a statistically significant sample set canbe controlled by the seller.

The seller may fix the value for the discount as a result of which thepremium is solved for automatically using the formula or formulae. Theinvention system may determine the high price and low price by, in theformer case adding the premium to the standard price, and in the lattercase, subtracting the discount from the standard price. The seller mayfix the value for the premium as a result of which the discount issolved for automatically using the formula or formulae. The inventionsystem may determine the high price and low price by, in the former caseadding the premium to the standard price, and in the latter case,subtracting the discount from the standard price. The seller may fixmultiple values for the discount resulting in multiple spreadscorresponding to the difference between the high price and low pricewhich the seller than presents as multiple pricing options to the buyer.The seller may fix multiple values for the premium resulting in multiplespreads resulting in multiple pricing options to the buyer.

The buyer may fix the value for the discount as a result of which thepremium is solved for automatically using the formula or formulae. Theinvention system may determine the high price and low price by, in theformer case adding the premium to the standard price, and in the lattercase, subtracting the discount from the standard price. The buyer mayfix the value for the premium as a result of which the discount issolved for automatically using the formula or formulae. The inventionsystem may determine the high price and the low price by, in the formercase adding the premium to the standard price, and in the latter case,subtracting the discount from the standard price. The buyer may fixmultiple values for the discount resulting in multiple spreads resultingin multiple pricing options to the buyer. The buyer may fix multiplevalues for the premium resulting in multiple spreads resulting inmultiple pricing options to the buyer. The buyer may identify a selectedattribute other than from the list provided by the seller. The buyer maysimultaneously select multiple selected attributes.

The invention system may arrange the selected attribute in such a naturethat it can be controlled by the seller or performer of the goods orservices, and the seller is provided with data prior to the event orservice about the aggregate of the premiums that the seller will realizebased on the positive occurrence of the controllable selected attributeswhich information is used to inform the seller's pricing decisions.

The client system and server system may communicate via the Internet.

BRIEF DESCRIPTION OF THE DRAWINGS

The foregoing will be apparent from the following more particulardescription of example embodiments of the invention, as illustrated inthe accompanying drawings in which like reference characters refer tothe same parts throughout the different views. The drawings are notnecessarily to scale, emphasis instead being placed upon illustratingembodiments of the present invention.

FIG. 1 is a block diagram illustrating an Outcome Based Pricing (OBP)system in accordance with the present invention;

FIG. 2 is a block diagram of the example central controller anddatabase(s) of FIG. 1;

FIG. 3 illustrates a sample table from the seller database of FIG. 2;

FIG. 4 illustrates a sample table from the buyer database of FIG. 2;

FIG. 5 illustrates a sample table from the final OBP offer price andsettlement database of FIG. 2;

FIG. 6 illustrates a sample table from the selectable attribute databaseof FIG. 2;

FIG. 7 illustrates a sample table from the statistical database of FIG.2;

FIG. 8 illustrates a sample table from the seller rules database of FIG.2;

FIG. 9 illustrates a sample table from the available inventory andstandard pricing database of FIG. 2;

FIG. 10 illustrates a sample table from the selected attribute outcomedatabase of FIG. 2;

FIG. 11 illustrates a sample table from the offer price database of FIG.2;

FIG. 12 is a flowchart describing an example OBP price determinationsubroutine implemented by the central controller of FIG. 2;

FIG. 13 is a flowchart describing an example OBP order subroutineimplemented by the central controller of FIG. 2; and

FIG. 14 is a flowchart describing an example OBP buyer settlementsubroutine implemented by the central controller of FIG. 2.

DETAILED DESCRIPTION OF THE INVENTION

A description of example embodiments of the invention follows.

The present invention allows sellers of goods, including tickets to avariety of event performances, and services, to set prices based on theattributes that have undefined or unknown outcome (occurrence) when thepurchase is made. Through this pricing methodology, the ultimate pricepaid by the buyer more closely reflects the value realized by the buyer,and the payment received by the seller more closely reflects the valuedelivered by the seller. While it has application in offline sales aswell, the current invention is best suited to the purchases made overthe Internet.

Outcome Based Pricing and Settlement Methodology Pricing Engine

Outcome based pricing (OBP) is a method that enables prices to be setfor goods or services at a price that varies depending on the occurrenceof one or more attributes potentially associated with such goods andservices, the occurrence of which will not be known until after theevent or service. For example, a price of a specific seat for aspectator sporting event would typically be a fixed $50.00 under theseller's standard pricing system. However, since a buyer gets more valueout of a win by his favorite spectator sports team than a loss, thebuyer and seller might agree that buyer will pay $40.00, a $10“discount”, if the buyer's favorite team loses, and $60.00, a $10“premium,” if the buyer's favorite team wins. The process by which OBPallows the seller and buyer to establish a price is referred to as theOBP pricing engine (“PE”) for purposes of this application.

Because of the uncertainty of the attributes that may be selected by abuyer using the OBP system, OBP introduces uncertainty into the totalrevenues that a seller can expect to receive from the sale of ticketsover a period of time. This uncertainty has the potential to result insignificant variability in the gross revenues generated from sales. Thecurrent invention allows for the setting of discounts and premiums for agiven unit based upon the statistical probability of an attributepotentially associated with such event or service. As a result, theultimate price payable for a given unit over a statistically significantsample of events can be managed so that gross receipts are morepredictable. This is accomplished by accessing a database that containsthe statistical probabilities of the attributes that the buyer ispermitted to choose from and then using these probabilities in a formulato determine the discounts and premiums relative to the standard priceof the ticket under conventional pricing methods. Such mathematicalrelationships, which shall be established by the seller in accordancewith the seller's business objectives, will allow the seller to maintaina more predictable level of cash flow than might otherwise result usingOBP. Using this approach, if the statistical probabilities bear out,aggregate premiums above the standard price paid by a set of buyerscould be set so as to offset, exceed or be less than aggregate discountsbelow the standard price paid by such buyers. The formula fixed by theseller that establishes this mathematical relationship is referred toherein as the “Base Rule”. The process by which OBP allows the seller toestablish prices using statistical probabilities in order to moderate orcontrol revenue deviation is referred to as the intelligent pricingengine (IPE) for purposes of this application.

Settlement Engine

Since the ultimate price to be paid by the purchaser under the OBPsystem will not be known until after the purchase, the system raises afundamental question regarding the timing and mechanics related to thesettlement of the transaction. Should the buyer be charged at the timeof the order when the final price is unknown, after the event at whichthe final price will be known, or a combination of the two? Under theOBP system, the seller can charge the buyer a certain amount up front,and then if the final price is different, settle with the buyer at thetime the final price is established (the “Two Step SettlementApproach”). Under this approach, if the price paid by the buyer at thetime of the order is higher than the final price, the seller can settlewith the buyer either by issuing a credit card refund or merchandisecredit against future purchases, or by allowing the buyer to receive arefund or merchandise credit. Other techniques and methods for creditingthe buyer are suitable (e.g., payment toward a membership or awardsclubs or the like), if the price paid by the buyer is lower than thefinal price, the seller can settle by charging the credit card of thebuyer an additional fee after the event. As an alternative approach, theseller could wait until the final price is established after the eventand charge the buyer the full amount at that time (the “One StepSettlement Approach”).

Regardless of whether the seller and purchaser contract under the OneStep Settlement Approach or Two Step Settlement Approach, the finalprice will need to be ascertained after the event has occurred or theservice delivered, and a final settlement of the purchase will benecessary. The OBP system monitors the event for which the ticket waspurchased, or the service ordered, and once the event is over or theservice is delivered, based on whether the selected attribute orattributes occurred, settles the transaction. The process by which OBPautomatically ascertains the final price based on the OBP system, andsettles the transaction through either a credit or charge or the like tothe buyer, is referred to as the intelligent settlement engine (“ISE”)for purposes of this application.

In summary, the current invention allows sellers to offer goods,specifically event tickets, and certain services, at prices that varydepending on what transpires during the event or service. By applyingcertain formula-based pricing rules, including for example pricing basedon statistical probabilities, the seller can deploy OBP and minimizesignificant deviation from a pre-determined revenue plan, oralternatively build-in an increase or even decrease in sales revenues.In addition, the current invention allows for the automated order,payment and final settlement of the purchase transaction. The preferredembodiment for the OBP system is via a computer network that includesthe Internet.

Representative OBP Transaction Seller Perspective

The Red Sox and their 2008 season have been used hereinafter as anon-limiting example of an institution that may incorporate OBP as apricing option or alternative. In this example embodiment, the Red Soxare selling tickets to their 2008 season and have decided to incorporateOBP as a pricing option for a certain number of seats for each game. Inthis example, one pricing objective is to offer tickets using OBP sothat the discount and premiums exactly offset each other over astatistically significant sample set of games resulting in no deviationfrom the standard price for tickets sold using OBP—the “Zero DeviationBase Rule.” In this example, the Red Sox also want to offer buyersseveral different selectable attributes to choose from, of which thebuyer may be required to select at least one, and a range of pricingoptions based on the selected attribute all of which satisfy the ZeroDeviation Base Rule.

The Zero Deviation Base Rule is as follows:

(probability of Selected Attribute)×(premium)=(1 minus Probability ofSelected Attribute)×(discount)

Since there are two additional unknown variables in the above formula,namely “premium” and “discount”, the Red Sox must either pick a valuefor one of the two variables or introduce a second formula as part ofthe Base Rule that establishes a linear relationship between the twovariables that must be satisfied simultaneously with the Zero DeviationBase Rule. The Red Sox choose to fix the discount, and since they wishto offer multiple pricing options, selecting three discounts—$10.00,$20.00 and $30.00. The corresponding premiums, and resulting high andlow prices, are derived from solving the Base Rule using thesediscounts.

On Apr. 30, 2008, the OBP system receives an order from a fan for agrand stand seat to a Red Sox/Yankee game on Aug. 1, 2008. The Red Soxhave offered multiple selectable attributes to the buyer and the buyerhas selected “Red Sox Win” as the selected attribute, for non-limitingexample. The OBP system pulls the probability of the selectedattribute—Red Sox win—from a database and determines that theprobability in this particular case is 0.67. The probability is thenentered into the pricing formula along with the specified discounts andthe premium that corresponds with each specified discount is solved forthree times as follows:

(0.67)×(premium Payment)=(1−0.67)×($10.00)

premium Payment=0.33/0.67×$10.00

premium Payment=$5.00

This equation is solved for two more times with the two remainingdiscounts, $20.00 and $30.00, and results in corresponding premiums of$10.00 and $15.00 respectively.

The OBP system then pulls the standard price for the selected ticket andsolves for the three pricing options by subtracting the discount fromthe standard price and adding the corresponding premium to the standardprice for each of the three stipulated discounts as follows where thestandard price for the selected ticket is $50.00:

$50.00+$5.00=$55.00=high price 1

$50.00−$10.00=$40.00=low price 1

$50.00+$10.00=$60.00=high price 2

$50.00−$20.00=$30.00=low price 2

$50.00+$15.00=$65.00=high price 3

$50.00−$30.00=$20.00=low price 3

Therefore, in this example the Red Sox will offer the buyer threedifferent pricing options under OBP with the high price being the pricepaid if the Red Sox win and the low price being the price paid if theRed Sox lose. In this case the three options are (i) $40.00 lose and$55.00 win, (ii) $30.00 lose and $60.00 win, and (iii) $20.00 lose and$65.00 win.

The buyer selects the first option with the contractual understandingthat he will pay the high price at the time of the purchase and berepaid the difference between the high price and low price after thegame if the Red Sox lose by receipt of a $15.00 credit on his creditcard or otherwise effected. A charge of $55.00 is applied to the buyer'scredit card on Apr. 30, 2008.

After Aug. 1, 2008, the OBP system pulls the result of the game from adatabase, and because the Red Sox lost the game, initiates a $15.00credit to the buyer's credit card.

Buyer Perspective and User Interface.

With the invention in practice, a purchaser seeking to make a ticketpurchase online via the Internet would first go to a website at whichtickets are offered for sale by a seller for a particular event orservice. Through a user interface, the customer would be offered twochoices: 1) the option to pay a fixed, up front fee using conventionalpricing at the standard price; or 2) the option to use OBP. If theconventional pricing model is chosen, the ticket is ordered andfulfilled using standard, e-commerce fulfillment practices. However, ifOBP is chosen, a new pricing and payment method is deployed.

The Following is an Illustrative Non-Limiting Example:

The buyer is a Red Sox fan who on Apr. 30, 2008, is purchasing a singlegrandstand seat for a New York Yankees game at Fenway Park that willtake place on Aug. 1, 2008, over the Internet. After the buyeridentifies a seat he is interested in, the standard price of the ticketusing the current pricing method is displayed. Alongside the standardprice for the ticket, the buyer is offered the option of viewing theprice options that would result from the OBP method. The next displayscreen might display the following information:

-   -   standard ticket price is $50.00, click through to purchase now,        or    -   click through to see OBP ticket price options.

The buyer selects OBP pricing. Other arrangements for displaying OBPticket price options are suitable.

Selectable Attributes

Red Sox then offer the buyer a range of attributes to choose from asfollows, and the buyer is instructed to select one, for non-limitingexample:

-   -   Red Sox win    -   Red Sox win by shutout    -   Red Sox win on home run in 9^(th) inning    -   Red Sox win by no hitter    -   Opponent wins

The buyer selects the first attribute, “Red Sox win”.

Pricing Options

Upon making this selection, the buyer is presented with a range ofpricing options associated with the selected attribute “Red Sox win.”The range of possible OBP pricing options offered by the Red Sox, whichvary in this case based on the spread between the price paid in theevent of a Red Sox win verses a Red Sox loss, might be presented asfollows with instructions for the buyer to select one:

-   -   If Red Sox win, Final price=$55.00, but if Red Sox lose, Final        price=$40.00.    -   If Red Sox win, Final price=$60.00, but if Red Sox lose, Final        price=$30.00.    -   If Red Sox win, Final price=$65.00, but if Red Sox lose, Final        price=$20.00.    -   Return to standard pricing option of $50.00.

The buyer selects the first option, thereby agreeing to pay $55.00 ifthe Red Sox win, and $40.00 if the Red Sox lose, on Aug. 1, 2008.

Settlement

The buyer submits credit card (or other form of payment) and otheridentifying information to the OBP system and his credit card is charged$55.00 on Apr. 30, 2008. The buyer understands that if the Red Sox lose,the buyer will be credited $15.00 (via credit card used to make theinitial purchase or other form of payment).

The Red Sox lose the game on Aug. 1, 2008. The Red Sox automaticallyapply a credit of $15.00 to the buyer's credit card the day after thegame attended by the buyer and the credit shows up on the buyer's nextstatement.

Seller Customization of OBP

The non-limiting example of OBP above illustrates certain optionsavailable to the seller when using the invention OBP system. The BaseRule in the above example is set to result in zero deviation from thestandard price—the Zero Deviation Base Rule. The buyer is given multipleselectable attributes to choose from. The buyer is only allowed toselect one attribute (in one example), but the buyer is given multiplepricing options to choose from based on the selected attribute. In anygiven situation the seller can modify the buyer options along thefollowing dimensions—the Base Rule formula, the number of selectableattributes to choose from, the number of selectable attributes that maybe chosen, and the number of pricing options that correspond with agiven selected attribute or attributes. Other dimensions are suitable.The seller can also solicit the buyer's input on these dimensions.

Base Rule Static Base Rule

The Base Rule could be as simple as fixing the discount and premiumwithout the need for any formula. For example, the Base Rule could bethat the premium shall be $10.00 if the selected attribute occurs (a“positive occurrence”) and the discount shall be $20.00 if the selectedattribute does not occur (a “negative occurrence”).

Zero Deviation Base Rule

Per the above illustration, the Base Rule can be set so that thediscount and premiums relate to the standard price so they exactlyoffset each other over a statistically significant sample set of gamesresulting in no deviation from the standard price in the aggregate.

The Zero Deviation Base Rule is as follows:

(probability of Selected Attribute)×(premium)=(1 minus Probability ofSelected Attribute)×(discount)

Plus Deviation Base Rule

The seller can set the Base Rule such that the resulting ticket price ison average a certain dollar amount higher than the standard price. Inorder to accomplish this objective, the seller modifies the ZeroDeviation Base Rule formula by changing the relationship between thediscount and the premium to reflect the desired built-in premium, say$2.00 for non-limiting example.

The Plus Deviation Base Rule is as follows:

(probability of Selected Attribute)×(premium Payment)=[(1 minusProbability of Selected Attribute)×(discount)]+$2.00

Minus Deviation Base Rule

Similarly, the seller can use OBP to establish a Base Rule such that theresulting ticket price is on average a certain dollar amount lower thanthe standard price. In order to accomplish this objective, the sellermodifies the Zero Deviation Base Rule formula by changing therelationship between the discount and the premium to reflect the desiredbuilt-in discount, say $2.00 for non-limiting example.

The Minus Deviation Base Rule is as follows:

(probability of Selected Attribute)×(premium Payment)=[(1 minusProbability of Selected Attribute)×(discount)]−$2.00

Range of Selectable Attributes

The seller can offer the buyer the option of choosing from just oneselectable attribute, or a range of selectable attributes as was thecase in the above example. The seller may also pre-define the list ofselectable attributes or allow the buyer to further define (i.e., addto) the list of selectable attributes. Other configurations ofselectable attributes lists are suitable. The only limitation from theseller's perspective is that if the seller is deploying a Base Rule thatincludes a statistical probability variable, the listed and selectedattributes need to have a probability that the OBP system can pull froma database in order to insert that variable in the Base Rule formula.

Number of Selected Attributes

The seller may allow the buyer to select just one of the selectableattributes as in the above example, or more than one selectableattribute. If multiple attributes are selected, they can dependentlyaffect the pricing as a “package” (i.e. if all three selected attributesoccur, then price is X, but if not all 3 occur, then price is Y), orindependently (i.e. if selected attribute 1 occurs, premium 1 is appliedirrespective of selected attributes 2 and 3, the occurrence of whichalso have respective independent impact on the price.)

If there are multiple attributes that are selected by the buyer, andeach independently impacts the price, then the Zero Deviation Base Rulewould instead be a summation equation of each selected attribute. Forexample, if there are 3 selected attributes chosen, then the Base Ruleformula could be:

(Probability of Selected Attribute1×premium Payment1)+(Probability ofSelected Attribute2×premium Payment2)+(Probability of SelectedAttribute3×premium Payment3)=(1 minus Probability of SelectedAttribute1×discount1)+(1 minus Probability of SelectedAttribute2×discount2)+(1 minus Probability of SelectedAttribute3×discount3)

Multiple Pricing Options

The seller could also provide the buyer several pricing options wherethe Base Rule is satisfied but the difference between the high and lowprices, or “spread”, varies so there are multiple pricing options tochoose from. This can be done either by fixing several discounts (as wasdone in the above example) or premiums, or alternatively by establishingadditional mathematical relationships beyond the Base Rule that must besatisfied. For example, the same result achieved in the example abovecould have been achieved by requiring the three pricing options satisfythe following additional formulas, which establish “spread” requirementsbetween the high price and low price, in addition to the Base Rule:

discount+premium=$15.00

discount+premium=$30.00

discount+Premium=$45.00

Solicitation of Buyer Input

The seller could also choose to allow the buyer to have direct inputinto the pricing options by, for example, (i) defining the selectedattributes, (ii) selecting the premium or discount, or (iii) choosingone or more “spreads”. The following are examples in which the sellercan solicit the input of the buyer to establish the pricing options.

Buyer Driven Selected Attributes

Rather than providing a single or limited pre-selected set of selectableattributes, the seller can allow the buyer to choose a selectedattribute from a much broader, more open ended selection, or to suggesta selected attribute independent of any list offered by the seller. Theseller could also allow the buyer to choose multiple selectedattributes.

Buyer Driven Discount

The seller could ask the buyer how much the buyer wants as a discountoff the standard price in the event of a loss, and then provide thebuyer with a premium above the standard price that the buyer would needto pay in the event of a win in order to receive the stated discount offthe standard price in the event of a loss. This would not require a newBase Rule, just a fixing of the discount variable per the buyer'srequest.

Buyer Driven Premium

As an additional alternative, the seller could ask the buyer how much ofa premium the buyer would be willing to pay above the standard price inthe event of a win, and then provide the buyer with a discount thatwould be applied in the event of a loss in exchange for the buyer'swillingness to pay the stated premium for a win. This would not requirea new Base Rule, just a fixing of the premium variable per the buyer'srequest.

Buyer Driven Spread

As a third alternative, the seller could ask the buyer to specify one ormore desired spreads and present one or more pricing options thatsatisfy these spreads.

Other Customizable Features

In addition to flexibility in establishing the pricing options, OBP canoffer flexibility on other features of the platform, such as themechanics of settlement, as well as enable the seller to improve itsprofitability through performance recommendations and promotions.

Alternative Settlement Options

Instead of charging the buyer's credit card the full price at the timeof the original purchase, the buyer could charge the credit card onlywhen the outcome of the Selected Attribute is known, or could charge thebuyer the price that assumes the attribute does not occur then charge anadditional amount if the attribute occurs, or the buyer could offer amerchandise credit to settle the difference in the event of a loss. Inaddition, instead of settling the final payment through a credit cardtransaction the seller could provide the buyer with store credit or cashredemption offer.

Controllable Selected Attributes and Performance Recommendations

For certain types of performances, such as a sporting event or livemusic concerts, there are aspects of the performance that can becontrolled either by the promoters or performers—for example, thepresence of a specific athlete in the lineup for a given game, or theinclusion of a specific song at a music concert. For such performances,the current invention will include a feature that allows the aggregatedata gathered from the buyers' selection of selectable attributes, suchas the playing of a particular song during a music concert, to becaptured, analyzed and presented to the sellers. The sellers will beable to use this data to direct the performers to ensure that certainoccurrences that will result in a premium in fact occur during the mainperformance resulting in higher gate revenues. This will allow theseller and performer to maximize revenue from the sale of tickets. Overtime OBP will serve the additional benefit of allowing sellers to modelvarious pricing scenarios as a revenue projection tool by allowing theseller to develop a database that can be used to calculate the priceelasticity of demand for various “attributes” or combinations thereof.

Promotions

The OBP system can be used to enable the seller to offer a broad rangeof promotions where the promotion being offered ties in some way to theoutcome of the event. For example, the seller could provide randomdiscounts at significantly below the standard price by setting thediscount to some substantially lower number than usual for every 1000ticket buyer. This would create an incentive for buyers to use the OBP.As an alternative, the seller could increase tickets for an upcomingseason, but only for games in which the seller's team wins.

Reduction of OBP Pricing Methodology to Practice

The current invention will be reduced to practice as a software platformthat will enable the seller of goods, specifically tickets to certainevents, and certain services to deploy the OBP system. The ticketsellers will be able to use the flexibility of the OBP method todetermine optimal pricing strategies that incorporate OBP to achievesales objectives, including an increase in overall sales and increasedrevenue from existing sales. From the buyer's perspective, the OBPmethod offers buyers an option of purchasing units at a price that ismore commensurate with the value they receive, and a richer, moreinteractive ticket sales experience that incorporates gaming elements.

FIG. 1 shows an OBP management system 100 for receiving and processingOBP purchase orders from a buyer 110 of a particular good (specificallya ticket to an event such as an athletic contest, music concert orsimilar live performance) or service (such as airline transportation),from a particular seller 120 of a particular event or service, where theprice to be paid by the buyer depends on the one or more attributespotentially characteristic of the event or service. The OBP managementsystem enables the buyer 110 and seller 120 to agree on two (or more)prices for a particular event or service at the time of the purchase.The lower of the two prices is the price that the buyer 110 will pay ifa specific attribute potentially characteristic of a particular event orservice does not in fact occur (a negative occurrence). The higher ofthe two prices is the price that the buyer 110 will pay if a specificattribute potentially characteristic of a particular event or servicedoes in fact occur (a positive occurrence). The OBP system calculatesthese prices using rules established by the seller 120 which compriseone or more equations that establish mathematical relationships betweena set of variables including, among possible others, the probability ofthe selected attribute occurring, the standard price for the event orservice purchased, the premium to be paid in the event of a positiveoccurrence, and a discount to be credited in the event of a negativeoccurrence. The OBP system will monitor a set of attributes associatedwith the purchased event or service, calculate the final contract price,the amount of final settlement, and allow for the automated settlementof the purchase after the event or service is complete by charging orcrediting the buyer 110.

FIG. 2 is a block diagram 200 showing the architecture of anillustrative central controller 120. The central controller 120 includescertain standard hardware components, such as any of a centralprocessing unit (CPU) 210, a random access memory (RAM) 220, a read onlymemory (ROM) 230, a clock 240, a data storage device 250, and acommunications port 260. The CPU 210 can be linked to other elementssuch as the data storage device, either by means of a shared data bus,or dedicated connections. The communications port 260 connects thecentral controller 120 to each buyer 110 and seller 120 and optionallyto a remote credit processing servers. The communications port 260 mayinclude multiple communication channels for simultaneously establishinga plurality of connections.

The ROM 230 and/or data storage device 250 are operable to store one ormore instructions, to be discussed in conjunction with FIGS. 12, 13 and14, which the CPU 210 is operable to retrieve, interpret and execute.For example, the ROM 230 and/or data storage device 250 can storeprocesses to accomplish the calculation of the OBP pricing options 271,process an initial order between the sellers and buyers 272 and executethe final settlement following the occurrence of the event 273.

The data storage device 250 includes a seller database 251, a buyerdatabase 252, a final OBP price and settlement database 253, aselectable attribute database 254, a statistics database 255, a sellerrules database 256, an available inventory and standard pricing database257, a selected attribute outcome database 258, and an offer pricedatabase 259. The seller database 251 stores information on each seller120 which is registered with the OBP management system 100, includingidentification information and contact information. The buyer database252 stores information on each buyer transacting business through theOBP management system 100, including identification information andbilling information, such as a credit card number or anothergeneral-purpose account identifier. The final OBP price and settlementdatabase 253 contains a record of each purchase processed by the OBPmanagement system 100, including the ticket or service purchased, theselected attribute, the high and low contractual price to be paid basedon the occurrence of the selected attribute, the price paid at the timeof purchase, and the contingent settlement amount. The selectableattribute database 254 contains all selectable attributes for eachseller 120 associated with a particular event or service. The statisticsdatabase 255 contains the probabilities of some or all selectableattributes. The seller rules database 256 includes the formulae fordetermining the high and low price for purchases as determined by theseller 120. The available inventory and standard price database 257contains the standard price under the conventional pricing system forall goods and services offered using the OBP management system. Theselectable attribute outcome database 258 contains the outcome for eachselectable attribute once the outcome is known, i.e., after the event orservice occurs. The offer price database 259 contains the various highand low prices offered by a particular seller 120 to a particular buyer110 with respect to a particular ticket or service based on the selectedattribute for such ticket or service by such buyer 110 prior to thebuyer 110 making a final purchase decision and entering into contractwith the seller 120.

In addition, the data storage device 250 includes three subroutines. TheOBP price determination subroutine 271 includes the steps of (i)receiving from a buyer 110 a chosen selected attribute, (ii) calling theapplicable formula for calculating the premium and discount from theseller rules database 256, (iii) calling the applicable statistics fromthe statistics database 255, and (iv) calculating the high and low offerprice or prices for a specific ticket or service among which the buyer110 may select in order to enter into a contract to purchase such ticketor service. The order subroutine 272 is a subroutine executed by the OBPmanagement system where the buyer 110 places an order, a charge isinitiated to the buyer's 110 credit card, and the final OBP price andsettlement database 253 is populated with the information specific tothe purchase. The settlement subroutine 273 is a subroutine by which theselectable attribute outcome database 258 is populated on an ongoingbasis to store the outcome of each selectable attribute, which data isused in turn to update the final OBP price and settlement database 253to complete the data field for a given OBP transaction that correspondsto the settlement amount, after which the settlement is automaticallyinitiated by issuing a credit or debit to the account of the buyer 110.

The following are illustrative databases for deployment of the OBPpricing and settlement system as applied to the purchase and sale oftickets to professional baseball games.

FIG. 3 illustrates an example embodiment 300 of the present invention inwhich a seller database 251, which is registered with the OBP managementsystem 100, stores information on each seller. The seller database 251maintains a plurality of records, such as records 305, 310, 315 and 320,each associated with a different seller. For each seller identifier 330,the seller database 251 includes the corresponding seller name 340, aswell as the seller account number in fields 350 and other factors 360,respectively. The seller identifier stored in field 330 may be utilized,for example, to index a historical database (not shown) of previous OBPsales made by seller.

FIG. 4 illustrates an example embodiment 400 of the present invention inwhich a buyer database 252 stores information on each buyer transactingbusiness through the OBP management system 100, including biographicalinformation and billing information, such as a credit card number oranother general purpose account identifier. The buyer database 252maintains a plurality of records, such as records 405, 410, 415 and 420,each associated with a different buyer. For each buyer identifier infield 430, the buyer database 252 includes the corresponding buyer nameand address in fields 440 and 450, respectively, and credit card accountnumber in field 460. The buyer identifier stored in field 430 may beutilized, for example, to index a historical database (not shown) ofprevious OBP purchases made by the buyer.

FIG. 5 illustrates an example embodiment 500 of the final OBP offerprice and settlement database 253 that stores information on eachtransaction being processed by the OBP management system 100. The finaloffer price and settlement database 253 maintains a plurality ofrecords, such as records 505, 510, 515 and 520, each associated with adifferent transaction. For each transaction identified by the OBPtracking number in field 530, the final OBP offer price and settlementdatabase 253 includes the corresponding buyer identifier in field 535,seller identifier in field 540, date identifier in field 545, seatidentifier in field 550, selected attribute in field 555, price paid attime of contract in field 560, price to be paid in the event theselected attribute does not occur in field 565, price to be paid if theselected attribute occurs in field 570, the status of the selectedattribute (either “open” meaning either that it is not yet determinableas to whether the selected attribute(s) has occurred, and “closed”meaning that it is known as to whether the selected attribute(s) hasoccurred) in field 575, the occurrence of the selected attribute(s) infield 580 for the selected attribute(s) that are “closed”, thesettlement payment or credit, if any, owed on specific transactions for“closed” selected attributes in field 585, and the status of thesettlement in field 590.

FIG. 6 illustrates an example embodiment 600 of the selectable attributedatabase 254 that stores information on each selectable attributeoffered by a particular seller for transactions being processed usingthe OBP management system 100. The selectable attribute database 254maintains a plurality of records, such as records 605, 610, 615, 620 and625, each associated with a particular game date for which pricing isoffered using the OBP management system. For each game date identifiedin field 630, the selectable attribute database includes a list ofselectable attributes (e.g., 640, 650, 660, 670) that are available forsuch game.

FIG. 7 illustrates an example embodiment 700 of the statistical database255 that stores information on the probability for each selectableattribute offered by a particular seller for transactions beingprocessed using the OBP management system 100. The statistics database255 maintains a plurality of records, such as records 705, 710, 715, 720and 725, each associated with a particular game date for which pricingis offered using the OBP management system. For each game dateidentified in field 730, the statistics database 255 includes theprobability for each selectable attribute for such event including theprobability of a selectable attribute 1 in field 740, the probability ofselectable attribute 2 in field 750, the probability of selectableattribute 3 in field 760 and the probability of selectable attribute 4in field 770. It is noted that the OBP system will enable the real timecalculation of probabilities to be stored in this database based on rawdata of historical events.

FIG. 8 illustrates an example embodiment 800 of the seller rulesdatabase 256 that stores information on the pricing rules for eachseller using the OBP management system 100. The seller rules database256 maintains a plurality of records, such as records 805, 810, 815 and820, each associated with a particular seller that is offering goods orservices using the OBP management system 100. For each such selleridentified in field 830, the seller rule database includes a series ofrules establishing the mathematical formula or formulae pursuant towhich the prices corresponding to a particular good or service is to becalculated, including the base rule in field 840, the relationshipbetween the discount and premium 850, if any, established by the sellerin field, and any other relationships 860 that may be applicableincluding for those events/services in which the seller is offering morethan one combination of high/low prices to choose from.

FIG. 9 illustrates an example embodiment of the seller availableinventory and standard pricing database 257 that stores information onthe standard prices each seller offers for seats that are available andoffered for sale using the OBP management system. The seller standardpricing database maintains a plurality of records, such as records 905,910, 915, 920 and 925, each associated with a particular game date forsales offered using the OBP management system. For each game dateidentified in field 930, the available inventory and standard pricingdatabase 257 includes each unit for which OBP pricing is offered infield 940, and the standard price for such unit in field 950.

FIG. 10 illustrates an example embodiment 1000 of the selectableattribute outcome database 258 that stores information on the outcomefor each selectable occurrence offered by a particular seller fortransactions being processed using the OBP management system 100. Theselectable attribute outcome database 258 maintains a plurality ofrecords, such as records 1005, 1010, 1015, 1020 and 1025, eachassociated with a particular game date for which pricing is offeredusing the OBP management system. For each such game date identified infield 1030, the selectable attribute outcome database 258 includes theoutcome for such selectable attribute when it is known, including theoutcome for selectable attribute 1 in field 1040, the outcome forselectable attribute 2 in field 1050, the outcome for selectableattribute 3 in field 1060 and the outcome for selectable attribute 4 infield 1070. It is noted that this database may be populated manuallyusing data entry or by pulling the data from existing third partydatabases.

FIG. 11 illustrates an example embodiment 1100 of the offer pricedatabase 259 that stores pricing information for each OBP trackingnumber before entering the contract for purchase. The offer pricedatabase 259 offers a plurality of records, such as records 1105, 1110and 1115, each associated with an OBP tracking number for which aspecific request has been made by a potential buyer for the pricing oftickets offered for sale using the OBP management system. For each suchOBP tracking number identified in field 1120, the offer price database259 includes the prices at which the tickets are being offered to thebuyer, including the high price corresponding to the positive occurrenceof the selected attribute in field 1130, the low price corresponding tothe negative occurrence of the selected attribute in field 1140, and,where multiple pricing options are offered, the second option high pricein field 1150, the second option low price in field 1160, etc.

Processes

FIG. 12 illustrates a flowchart 1200 describing an example OBP ordersubroutine implemented by the central controller 120 of FIG. 2,according to an example embodiment of the present invention. The centralcontroller 120 can execute a subroutine in order to calculate 271 thehigh price and low price that satisfy the Base Rule. This subroutineincludes the steps of the server 1220

-   -   receiving a selected attribute and request for the OBP price        options from buyer 110 (1201);    -   calling the applicable formula from the seller rules database        256 (1202);    -   calling the probability variable 1203, if any, from the seller        statistics database 255 (1203);    -   calling the standard price from the available inventory and        standard price database 257 (1204);    -   performing the calculation of the premium and discount and        solving for the high and low prices (1205);    -   storing the resulting high price and low price in the offer        price database 259 (1206); and    -   if the buyer 110 accepts one of the OBP pricing options, storing        the final low price and high price in the final OBP price and        settlement database 253 (1207).

FIG. 13 is a flowchart 1300 describing an example OBP order subroutineimplemented by the central controller 120 of FIG. 2, according to anexample embodiment of the present invention. The central controller 120may execute a subroutine in order to process an order and the initialpayment settlement 272. This subroutine 272 includes the steps of:

-   -   receiving at a server 1320 an order at a price specified by the        buyer 110 (1301);    -   initiating a charge through the credit card processor or other        payment mechanism 1302;    -   sending an electronic receipt to the buyer 110 (1303); and    -   storing in the final OBP price and settlement database 253 the        price paid by the buyer 110, and the other information necessary        to identify the buyer with the purchase 1304.

FIG. 14 is a flowchart 1400 describing an example OBP buyer settlementsubroutine implemented by the central controller 120 of FIG. 2,according to an example embodiment of the present invention.

The central controller 120 can execute a subroutine 273 in order toexecute the final settlement after the event for which the purchase ismade is completed and the outcome of the selected attribute is known.This subroutine 273 includes the steps of:

-   -   a server 1420 calling from third party databases 1430 (if the        database is not populated manually) the outcome of selected        attributes and storing such information in the selected        attribute outcome database 258;    -   when the selected attribute outcome database 258 shows that a        selected attribute for a given purchase is “closed”, meaning the        event or service has been completed, storing such status in the        final OBP price and settlement database 253 in field 575 for the        applicable OBP tracking number for which the event identifier        and selected attribute correspond;    -   when the selected attribute outcome database 258 shows that the        occurrence of the selected attribute has been ascertained,        meaning that the actual occurrence of the selected attribute is        known and entered as either “positive” or “negative”, storing        such outcome in the final OBP price and settlement database 253        in field 580 for the applicable OBP tracking number;    -   initiating 1425 a final settlement charge or credit to the buyer        110 in an amount reflected in field 585 depending on whether the        occurrence was positive or negative;    -   sending 1410 an electronic receipt to the buyer 110 confirming        the final settlement; and    -   storing in the final OBP price and settlement database the final        settlement status 253.

It should be understood that procedures, such as those illustrated byflow diagram or block diagram herein or otherwise described herein, maybe implemented in the form of hardware, firmware, or software. Ifimplemented in software, the software may be implemented in any softwarelanguage consistent with the teachings herein and may be stored on anycomputer readable medium known or later developed in the art. Thesoftware, typically, in form of instructions, can be coded and executedby a processor in a manner understood in the art.

While this invention has been particularly shown and described withreferences to example embodiments thereof, it will be understood bythose skilled in the art that various changes in form and details may bemade therein without departing from the scope of the inventionencompassed by the appended claims. For example, the buyer or the systemon behalf of buyer may be able to select more than one attribute. It isunderstood that a number of programming database applications may beaccommodated by the present inventions. Other computer architectures,configurations, data processing methods and systems for displaying thecontents (GUI), determining buyer selections and sellerpreferences/settings, and calculating the low, high, and final pricesmay be employed, the foregoing being for purpose of illustration and notlimitation. Other forms of debit/credit transactions implementing theinvention system sales and settlement are suitable.

1-17. (canceled)
 18. A method for pricing and selling goods, includingtickets to certain events, and services, in which the final pricecharged to the buyer-user is determined and settled, after occurrence ofthe event or provision of the service, which price is based on whether apre-selected attribute potentially characteristic of such event orservice occurs during the event or service, comprising: receiving arequest from a client computer for a list of goods, including services,and providing such list; receiving a request from a client computer foravailability of the listed goods, and providing the availabilityinformation, receiving a request from the client computer for a standardprice of the listed, and providing the standard price receiving arequest from the client computer for a list of one or more selectableattributes, and providing the list of one or more selectable attributes,receiving a request from the client computer for a high price and a lowprice associated with a selectable attribute, calculating the high priceand low price, comprised of, calling from a database a formula orformulae to be used in the calculation, calling from a database astatistical probability for the selectable attribute, calling from adatabase the standard price, calling from a database any other constantsor mathematical relationships comprising one or more rules establishedby the seller, calculating a premium and a discount as a function of theformula or formulae, calculating the high price as a function of addingthe premium to the standard price and the low price as a function ofsubtracting the discount from the standard price, providing thebuyer-user with the high price and the low price, receiving a requestfrom the client computer to purchase the listed goods by agreeing to payat the time of the purchase either (i) the high price, (ii) the lowprice, (iii) no payment initially with full settlement to be made afterthe corresponding event is over or service rendered and a final priceknown, or (iv) the standard price, receiving the buyer confirmation ofhis or her acceptance of terms of settlement; receiving a request fromthe client computer for a purchase order, and providing the purchaseorder, executing a subroutine in order to settle the initial order andstoring the information necessary for final settlement of thetransaction, comprised of, responding to such purchase order byinitiating a charge to the buyer-user's credit or debit card through acredit card processor or accepting other form of payment, and initiatingthe fulfillment of the order and delivery of the ticket or confirmationof the order, receiving from the client computer a request for a receiptconfirming the purchase of the ticket, responding to the request for areceipt by sending an online receipt to the client computer, requestingfrom the client computer data with respect to the purchase, includingthe name of the buyer-user, the buyer-user's credit card information,the price paid by the buyer-user and the selected goods purchased,storing on a server in a data record specific identifying informationand detail with respect to such purchase, in the event the buyer-userselected option based pricing, after the completion of the event orservice, executing a subroutine comprised of, monitoring a data recordfor the status of the event or service for which the purchase was made,upon completion of the event or service calling from a data record theoutcome of the Selected Attribute, calling from a data record the finalsettlement amount and settlement instructions, initiating a credit ordebit to the user's credit card or some other form of final settlement,and storing on a server data the final settlement terms and status. 19.The method of claim 18 wherein both the premium and the discount arefixed by the seller.
 20. The method of claim 18 wherein the seller fixesmultiple values for the premium and discount representing differentspreads resulting in multiple pricing options to the buyer-user, and thehigh price and low price are determined by, in the former case addingthe premium to the standard price, and in the latter case, subtractingthe discount from the standard price.
 21. The method of claim 18 whereinthe premium and the discount are determined based on a formula orformulae established by the seller, defining the mathematicalrelationship between the standard price, the premium and the discount.22. The method of claim 21 wherein the seller fixes the value for thediscount as a result of which the premium is solved for automaticallyusing the formula or formulae and the high price and low price aredetermined, by, in the former case adding the premium to the standardprice, and in the latter case, subtracting the discount from thestandard price.
 23. The method of claim 21 wherein the seller fixes thevalue for the premium as a result of which the discount is solved forautomatically using the formula or formulae and the high price and lowprice are determined, by, in the former case adding the premium to thestandard price, and in the latter case, subtracting the discount fromthe standard price.
 24. The method of claim 22 wherein the seller fixesmultiple values for the discount resulting in multiple Spreadscorresponding to the difference between the high price and low pricewhich the seller than presents as multiple pricing options to thebuyer-user.
 25. The method of claim 23 wherein the seller fixes multiplevalues for the premium resulting in multiple Spreads resulting inmultiple pricing options to the buyer-user.
 26. The method of claim 21wherein the buyer-user fixes the value for the discount as a result ofwhich the premium is solved for automatically using the formula orformulae and the high price and low price are determined, by, in theformer case adding the premium to the standard price, and in the lattercase, subtracting the discount from the standard price.
 27. The methodof claim 21 wherein the buyer-user fixes the value for the premium as aresult of which the discount is solved for automatically using theformula or formulae and the high price and low price are determined, by,in the former case adding the premium to the standard price, and in thelatter case, subtracting the discount from the standard price.
 28. Themethod of claim 26 wherein the buyer fixes multiple values for thediscount resulting in multiple Spreads resulting in multiple pricingoptions to the buyer.
 29. The method of claim 27 wherein the buyer fixesmultiple values for the premium resulting in multiple Spreads resultingin multiple pricing options to the buyer-user.
 30. The method of claim21 wherein the buyer-user may identify a Selected Attribute other thanfrom the list provided by the seller.
 31. The method of claim 21 whereinthe buyer-user may simultaneously select multiple Selected Attributes.32. The method of claim 21 wherein the formula incorporates statisticalprobabilities for both the Positive Occurrence and Negative Occurrenceby calling such statistics from a database so that the seller canestablish the high price and low price such that the expected deviationfrom the standard price over a statistically significant sample set canbe controlled by the seller. 33.-51. (canceled)
 52. An apparatus forpricing and selling goods, including tickets to certain events, andservices, in which the final price charged to the buyer-user isdetermined and settled, after occurrence of the event or provision ofthe service, which price is based on whether a pre-selected attributepotentially characteristic of such event or service occurs during theevent or service, comprising: a module to receive a request from aclient computer for a list of goods, including services, and providingsuch list; a module to receive a request from a client computer foravailability of the listed goods, and providing the availabilityinformation, a module to receive a request from the client computer fora standard price of the listed, and providing the standard price amodule to receive a request from the client computer for a list of oneor more selectable attributes, and providing the list of one or moreselectable attributes, a module to receive a request from the clientcomputer for a high price and a low price associated with a selectableattribute, the module arranged to calculate the high price and low pricebased on a module to call from a database a formula or formulae to beused in the calculation, a module to call from a database a statisticalprobability for the selectable attribute, a module to call from adatabase the standard price, a module to call from a database any otherconstants or mathematical relationships comprising one or more rulesestablished by the seller, a module to calculate a premium and adiscount as a function of the formula or formulae, a module to calculatethe high price as a function of adding the premium to the standard priceand the low price as a function of subtracting the discount from thestandard price, a module to provide the buyer-user with the high priceand the low price, a module to receive a request from the clientcomputer to purchase the listed goods by agreeing to pay at the time ofthe purchase either (i) the high price, (ii) the low price, (iii) nopayment initially with full settlement to be made after thecorresponding event is over or service rendered and a final price known,or (iv) the standard price, a module to receive the buyer confirmationof his or her acceptance of terms of settlement; a module to receive arequest from the client computer for a purchase order, and providing thepurchase order, a module to execute a subroutine in order to settle theinitial order and storing the information necessary for final settlementof the transaction, comprised of, a module to respond to such purchaseorder by initiating a charge to the buyer-user's credit or debit cardthrough a credit card processor or accepting other form of payment, andinitiating the fulfillment of the order and delivery of the ticket orconfirmation of the order, a module to receive from the client computera request for a receipt confirming the purchase of the ticket, a moduleto respond to the request for a receipt by sending an online receipt tothe client computer, a module to request from the client computer datawith respect to the purchase, including the name of the buyer-user, thebuyer-user's credit card information, the price paid by the buyer-userand the selected goods purchased, a module to store on a server in adata record specific identifying information and detail with respect tosuch purchase, in the event the buyer-user selected option basedpricing, after the completion of the event or service, a module toexecute a subroutine arranged to monitor a data record for the status ofthe event or service for which the purchase was made, upon completion ofthe event or service, call from a data record the outcome of theSelected Attribute, call from a data record the final settlement amountand settlement instructions, initiate a credit or debit to the user'scredit card or some other form of final settlement, and store on aserver data the final settlement terms and status.
 53. The apparatus ofclaim 52 wherein both the premium and the discount are fixed by theseller.
 54. The apparatus of claim 52 wherein the seller fixes multipleSpreads resulting in multiple pricing options to the buyer, and the highprice and low price are determined by, in the former case adding thepremium to the standard price, and in the latter case, subtracting thediscount from the standard price.
 55. The apparatus of claim 52 whereinthe premium and the discount are determined based on a formula orformulae established by the seller defining the mathematicalrelationship between the standard price, the premium and the discount.56.-74. (canceled)